Vaughn Company purchased a machine on July 1, 2021, for $32,200. Vaughn paid $230 in title fees and county property tax of $144 on the machine. In addition, Vaughn paid $575 shipping charges for delivery, and $546 was paid to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 6 years with a salvage value of $3,450. Determine the depreciation base of Vaughn’s new machine. Vaughn uses straight-line depreciation. Depreciation base

College Accounting, Chapters 1-27
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Chapter18: Accounting For Long-term Assets
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Vaughn Company purchased a machine on July 1, 2021, for $32,200. Vaughn paid $230 in title fees and county property tax of $144 on the machine. In addition, Vaughn paid $575 shipping charges for delivery, and $546 was paid to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 6 years with a salvage value of $3,450.

Determine the depreciation base of Vaughn’s new machine. Vaughn uses straight-line depreciation.

Depreciation base
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